Question: 1 . Calculate your dependent variable column, for MSFT risk premium. Then, use the LINEST ( ) array function to compute the regression model results
Calculate your dependent variable column, for MSFT risk premium.
Then, use the LINEST array function to compute the regression model results and statistics, based on the specification earlier described for the FF three factor model:
Ri Rf b bRm Rf bSMB bHML error
Remember LINEST is an array function, so you want to use CtlShiftEnter. Also make sure to enter for the third and fourth argument to the function, to enable the intercept coefficient, and to enable model diagnostic statistics calculation, respectively.
Just to make sure you know which coefficient is which, enter labels for the coefficients in the following section. Recall that as per the documentation, coefficients are ordered from right to left.
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